However, rates immediately spiked following the two previous FOMC meetings by 31 and 17 basis points, respectively. Interest rates likely to climbĪt its prior FOMC meeting, the Fed raised its federal funds rate by 50 basis points (0.5%) - the largest hike in 22 years - in an effort to “rein in” inflation.Ĭhairman Jerome Powell tipped his hand in April stating, “additional 50 basis point increases should be on the table at the next couple of meetings.” With inflation still running rampant at 40-year highs, it’s likely June’s meeting will come with another 50-point jump.Īfter hitting the highest level since 2008, the average 30-year fixed rate mortgage (FRM) hit a downslide, decreasing over the past three weeks, according to Freddie Mac. In May, the central bank outlined its plan to hike its target rate following each of the year’s remaining meetings in order to combat the country’s towering inflation.Īny borrowers wanting to lock in a rate for a home purchase or a refinance should do it as quickly as possible before the next probable jump. While borrowers have enjoyed interest rate declines in recent weeks, that could reverse course after the Federal Reserve’s next Open Market Committee meeting on June 14 and 15. Zantac’s Maker Kept Quiet About Cancer Risks for 40 Yearsįear Made John McAfee Rich.J2 min read Will mortgage rates start rising again? The World’s War Machine Is Running Low on Ammunition (Updates with additional comments from Bullard.) Mester also said the central bank has to be prepared to move rates higher if inflation remains stubbornly elevated. “Setting aside what financial market participants expected us to do, I saw a compelling economic case for a 50 basis-point increase, which would have brought the top of the target range to 5%,” she said at an event organized by the Global Interdependence Center and the University of South Florida Sarasota-Manatee. Mester said earlier Thursday that incoming data has not changed her view that the Fed will need to bring the fed funds rate above 5% and hold it there for some time. “I wouldn’t rule anything out for that meeting, or any meeting in the future,” he said. They now see a greater chance that policymakers will return to outsize interest-rate increases at their upcoming March meeting.īullard said he welcomed that development, but said he would reserve judgment about what Fed officials should do in March. Traders have boosted their bets for further Fed action, following reports this week that point to persistent price pressures and underlying strength in the economy. While both officials participate in deliberations, they do not vote on monetary policy decisions this year. That followed a half percentage-point increase at their December meeting, which came after four consecutive jumbo-sized 75 basis-point hikes.īullard and Mester have been among the most hawkish policymakers over the past year, favoring more aggressive action to tame price pressures. “I think we could have continued that at this past meeting.”įed officials voted unanimously to lift the benchmark lending rate at the start of February by a quarter of a percentage point, raising it to a range of 4.5% to 4.75%. “I have argued consistently for front-loading of monetary policy,” Bullard said. Bullard also said he advocated for a 50 basis-point increase at the Fed’s meeting earlier this month, echoing remarks from Cleveland Fed President Loretta Mester earlier in the day, who said she saw a compelling economic case for a bigger rate increase.
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